Cyprus cannot afford to become complacent, EU officials tells MPs

Despite the economic recovery, Cyprus cannot afford to get complacent in regard to necessary structural reforms, a senior European Commission official told local MPs on Tuesday.

“Cyprus is in a comfortable position, with high growth, new jobs, the fiscal position is under control, non-performing loans remain at high levels but are declining. But the next crisis could be lurking around the corner and Cyprus must be prepared,” said Manfred Bergmann of the Directorate General for Economic and Financial Affairs of the European Commission.

He was meeting with MPs of the House finance and labour committees. Bergmann is in Cyprus as part of a tour of EU member states ahead of preparing the Commission’s country reports.

In his remarks, Bergmann urged the legislative and the executive branches to seek consensus for structural economic reforms, pointing out that the current government lacks a majority in parliament.

“I encourage you to explore compromises as Cyprus has no need for a hung parliament, particularly in good times, because otherwise all you can do is wait for the next crisis.

“You need to make hay while the sun shines,” he said.

According to Bergmann, the Commission’s assessments and recommendations to Cyprus regarding structural reforms are largely unchanged compared to those in 2017 and 2016.

Issues like non-performing loans and the public debt to GDP ratio are easier to manage in times of growth, he noted.

“But on other issues, progress has been slow, and this is likewise as a result of the government’s minority in parliament.”

For his part, MP Marios Mavrides of the ruling Disy party said the National Health Scheme is the only area where the European Commission has noted substantial progress.

“On other issues, such as privatisations and non-performing loans, very little to no progress is noted,” he said.

21 Comments

Wanderer

A rare occasion when an EU bureaucrat is talking sense. Tells a lot about quality of Cypriot bureaucrats.

A is B

April 25, 2018 at 12:31

The EU should not help these corrupt clowns any more.

Banjo

April 25, 2018 at 13:22

Doing just that would be quite a big help in itself.

The last time the EU ‘ helped out ‘ was to delete 4.5 BILIONS euros Cyprus had lent to Greece , causing the banks to collapse. Although the EU did then kindly LEANED Cyprus the money it had told Greece it could keep , with interest obviously.

Strangely the money the EU loaned to Greece must be repaid !!!!!

A is B

April 25, 2018 at 13:51

That did not cause the banks to collapse and this is about agreements made by the Cypriot government with regards to privatisations and government cut backs to secure a loan of 10 billion I think, plus interest. Are you drunk today Banjo.

Banjo

April 25, 2018 at 14:20

The Cypriot banks bought Greek government bonds ( loaned money to the Greek state ) in the amount of 4.5 billion euros . The EU wrote that off , almost immediately the banks here crashed . Their depositors money had gone , this is all well documented.

Then , yes , the EU loaned Cyprus 9 billion euros to re capitalise the banks and cover the mad spending of the previous government. The EU also gave some advice for cost cutting and privatisation, some advice was followed temporarily and some was simply ignored.

And no , I’m not drunk. Although 2.00pm is beer and cigar time 👍

A is B

April 25, 2018 at 15:24

2.00pm to early for me. !0 billion loan and no one forced the GCs to invest in Greece, in fact the were warned against it like so many other thing, but alas the GCs never list learn and think they know better.

Banjo

Bob Ellis

April 25, 2018 at 09:54

Shows how stuipid, niave, arrogant or a combination of all 3 the EU are. Complacency is a cultural attribute here along with greed, lawlessness, corruption etc. Only when the elite 2-3% of population have left with all the money will the rest of the population ask what happened. Coupled with those remaining on the island drowning in debt, no reputation leading to no sustainable investment and everything owned by Foreigners the EU has really done a good job with it’s recommendations and guidance. The EU will be right behind us when the next crisis hits, about 1500km behind us in their cushy jobs in Brussels.

Kevin Ingham

April 25, 2018 at 09:22

The original terms of the bailout have been pretty much ignored.

Sure the government fiances are better (that wasn’t all that difficult given that Cyprus has a surplus pre- Christophias, and he spent money like it was going out of fashion)) , but the title deeds issues has not been resolved, we don’t have proper foreclosure laws to tackle the NPL’s, the privatisations have been shelved private, debt levels remain the highest in Europe, money laundering issues have not gone away (if anything the passport scheme will have increased those concerns) and the deflationary pressures that have never been addressed remain like a time bomb ticking away.

The bailout terms were meant to address the aforementioned problems. So of course there is cause for concern

Bob Ellis

April 25, 2018 at 09:57

The EU are more interested in saving their own skins than any member states. With the UK leaving, Germans thinking about it, the crisis countries still in crisis and Italy/France wobbling the EU can’t even remember where Cyprus is, let alone what to do anything meaningful. Although the EU carries some blame, Cyprus must carry the majority as it walked into the mess of today with its eyes open over the last 30 years.

gentlegiant161

April 25, 2018 at 12:26

Your appraisal is a sound one.
There are words of warning in the Message that are couched in a particular way that are quite explicit.
Seems some are too busy trying to prop up a brexit to notice.
Germans seem pretty happy with their lot to me, they fail to see the golden age of brexit on the horizon, or arnt that gullible.?
UK on the other hand is in a sorry disarray,
Sending back The Windrush settlers we asked to come while at the same time trying to recruit young West Indians to come and work in the NHS because EU staff don’t trust the government and leaving in droves.

Douglas

April 25, 2018 at 04:50

EU cannot be taken seriously anymore.

Bob Ellis

April 25, 2018 at 10:15

Isn’t it time they rebadged themselves again. Failed as the Common Market, EEC and now as the EU. Same people, same objectives same outcome for the member states and their populations.

gentlegiant161

April 25, 2018 at 12:34

We’re are we now in the G7? oh we’re last, down from first!
Now even the GDP of GREECE is outperforming UK .
Pound hasn’t really done anything since it crashed after referendum.
When all the world are forming trading blocs Little England and Northern Ireland province will strike out on new strength of position to bargain on Boris Johnson’s Titanic voyage…

Banjo

April 25, 2018 at 13:05

Your Anti British propaganda is , as always , a distortion of the truth.

The pound has regained most of its loses since the referendum and will soon be above it’s pre referendum value.

Britain was the slowest growing G7 economy of 2017 yes , but it has , in the last two quarters , overtaken both Italy and Japan.

The world is forming trading blocks , the U.K. will also do this once it’s out of the EU. In the entire world only the EU see the need to take political control of members within its trading block , a system that will inevitably collapse.

Suggesting that Greece is better off economically than the U.K. Is as ridiculous as your use of the term ‘ little England ‘.

gentlegiant161

April 25, 2018 at 16:49

Read it plank instead of making it up as you go along…
Quoted from Bloomberg, plenty of other sources for the stupid.

“Feb 8, 2018 · Greece is growing faster than the U.K. and is outperforming it in financial markets. … Now that Europe is leading the developed world in growth, productivity and job creation ..”.
Liar 2. the pound today is at 1.14 how has that recovered to 1.36 mister? Try checking.
Ah anti British propaganda eh? Yeah right.
A family that can probably trace itself back further than you think as English, have had a member serving in its armed forces long before and during both world wars and since including me..
You stupidly attempt to link my dislike and utter disgust at the present state of the country of England under this bunch of useless idiots and the harm it has caused to its own population, Children, the old and the ill of all those residing there..
Now in future if you going to question comments provide a source not dream one up.
Message out.

peemdubya

April 25, 2018 at 22:18

An abusive rant from gg161 is a novelty – what has got your goat today?

Banjo

April 26, 2018 at 09:39

A more realistic and therefore more successful picture of the UK government and the UK as a whole , has got his goat….and me of course, I seem to have that effect on people.

gentlegiant161

April 27, 2018 at 15:53

Usual crappy delusion ….
WHY are you quoting LAST year’s early figures when I’m quoting PRESENT year facts?
That you say arnt true and claim I don’t look beyond the headlines, when all you can quote is a year old?
The pound today has Lost a cent and is still way below what you’ve claimed is a miraculous recovery.
I was getting 1.35 Euro to the pound before the referendum. What is it today then?
And just to prove a point the ONS figures released today ( that’s THIS YEAR as was my comment )
From the Independant today ( not that multiple outlets are of any interest when your wrong)

“UK economic growth collapses to just 0.1% in first quarter of 2018, new figures show
It was well down on the 0.4 per cent expansion at the end of 2017 and the weakest quarterly growth rate recorded since 2012”

Says the expansion at the end of 2017 was only 0.4% so don’t know where you get your figures and scream FACT ??
GDP of UK is lowest growth in five years.
That UK is doing so well under present government is pure B.S..
Try reading the May / Rudd farce and check the article by Polly Toynbee in the Guardian today.
Stop lying and as requested ( but ignored as usual ) quote sources…
Now back under your stone .

Banjo

April 25, 2018 at 23:06

Regardless of what HEADLINES you have read , the Greek economy grew by 1.4% in 2017 and the U.K. economy grew by 1.8% in the same year ….. so which is the greater. These are official and confirmed economic FACTS.
That was the highest rate of growth Greece has seen in 10 years and slowest growth Britain has hade in over 5 years. Britain’s worse year is still better than Greece best year. Add to that Greece has over 20% unemployment and insurmountable debt, shows the ridiculousness of your claim .
If you read beyond the headlines you regurgitate here , you’d know that every economic indicator agrees that the pound will bybyears end have recovered to its past value , which by the way , was not 1.36 to the Euro.

The venom of your words are not those simply of a socialist criticising a conservative government, rather they reveal your contempt for the country and its people at large. Those words are printed for all to see. Being British doesn’t preclude you from being anti British. Even if you do it subconsciously.

Kevin Ingham

April 25, 2018 at 16:32

You can have as much or as little or as much “growth” as you like, but “growth” in which retirement ages go up, social provision declines and houses become an unaffordable pipe dream isn’t the most desirable variety

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